Interview with Dale Good, CEO of GLS Supply Chain Equipment
Last week we had the opportunity to sit down with Dale Good, CEO of GLS Supply Chain Equipment, and talk about the current state of distribution and logistics in South Africa. He gave us exclusive insights into the industry and offered his advice on how SA can optimise its operations and in doing so catch up with its foreign counterparts.
Tell us a bit about your professional history
A few years ago I was a part owner a software company, CoreProcess. During this time we wrote a program, CoreValue, which did financial modeling of supply chains, and launched it in London. Through this I was exposed to major international retailers such as, Tesco, Somerfield, ASDA (Walmart), Carrefour and many others. This was while some of them were all undergoing their centralization processes, which gave me interesting insights into the complexity of this strategy. I was exposed to both the Vendor and retailer issues through this as our program measured the cost from factory gate to shelf and breakdown all the steps, and costs, in between. The knowledge gained from this enabled us to optimize the supply chain and greatly cut costs, information which became very valuable to both buyers and vendors in the industry.
What is the current state of distribution operations in South Africa?
South Africa is in an interesting position because they have been operating 2 existing models for distribution, centralized and direct-to-store. Whilst most retailers in South Africa have started to shift to a centralized distribution system, which is for the better, we are still suffering from the hangover of a dual system and there is still a long way to go and take out these costs in an effective way. The 2 different models and their respective cost structures have resulted in the substitution of costs across both cost structures, this still needs to be untangled over the next couple of years or so.
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Albert Pretorius
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